Question

How is the money collected from small investors in mutual funds utilized by the mutual fund trust?

a.

It is distributed among unit-holders as guaranteed returns

b.

It is invested in a single type of security for maximum returns

c.

It is invested in different securities based on the fund's objectives

d.

It is kept in fixed deposits for safety

Answer: (c).It is invested in different securities based on the fund's objectives Explanation:The money collected is invested in different securities based on the objectives of the mutual fund.

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Q. How is the money collected from small investors in mutual funds utilized by the mutual fund trust?

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